SALESFORCE INC (CRM) Fundamental Analysis & Valuation

NYSE:CRM • US79466L3024

Current stock price

184.17 USD
-0.86 (-0.46%)
Last:

This CRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CRM Profitability Analysis

1.1 Basic Checks

  • In the past year CRM was profitable.
  • CRM had a positive operating cash flow in the past year.
  • CRM had positive earnings in each of the past 5 years.
  • CRM had a positive operating cash flow in each of the past 5 years.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B

1.2 Ratios

  • The Return On Assets of CRM (6.64%) is better than 78.55% of its industry peers.
  • CRM has a better Return On Equity (12.61%) than 78.55% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.59%, CRM belongs to the top of the industry, outperforming 84.36% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CRM is below the industry average of 10.99%.
  • The 3 year average ROIC (8.16%) for CRM is below the current ROIC(9.59%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROIC 9.59%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8 10

1.3 Margins

  • CRM's Profit Margin of 17.96% is amongst the best of the industry. CRM outperforms 84.36% of its industry peers.
  • CRM's Profit Margin has been stable in the last couple of years.
  • CRM has a Operating Margin of 21.47%. This is amongst the best in the industry. CRM outperforms 89.09% of its industry peers.
  • In the last couple of years the Operating Margin of CRM has grown nicely.
  • CRM has a better Gross Margin (77.68%) than 74.55% of its industry peers.
  • CRM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

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4

2. CRM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRM is destroying value.
  • CRM has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CRM has been increased compared to 5 years ago.
  • CRM has a worse debt/assets ratio than last year.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B 100B

2.2 Solvency

  • CRM has an Altman-Z score of 2.74. This is not the best score and indicates that CRM is in the grey zone with still only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.74, CRM is doing good in the industry, outperforming 63.27% of the companies in the same industry.
  • The Debt to FCF ratio of CRM is 1.00, which is an excellent value as it means it would take CRM, only 1.00 years of fcf income to pay off all of its debts.
  • CRM's Debt to FCF ratio of 1.00 is fine compared to the rest of the industry. CRM outperforms 73.82% of its industry peers.
  • A Debt/Equity ratio of 0.18 indicates that CRM is not too dependend on debt financing.
  • The Debt to Equity ratio of CRM (0.18) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Altman-Z 2.74
ROIC/WACC0.88
WACC10.85%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that CRM may have some problems paying its short term obligations.
  • With a Current ratio value of 0.76, CRM is not doing good in the industry: 86.91% of the companies in the same industry are doing better.
  • CRM has a Quick Ratio of 0.76. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.76, CRM is doing worse than 86.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. CRM Growth Analysis

3.1 Past

  • CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.16%, which is quite impressive.
  • CRM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.60% yearly.
  • CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
  • CRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.34% yearly.
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%

3.2 Future

  • Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.19% on average per year.
  • CRM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.78% yearly.
EPS Next Y5.86%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
EPS Next 5Y12.19%
Revenue Next Year11.16%
Revenue Next 2Y10.32%
Revenue Next 3Y10.04%
Revenue Next 5Y9.78%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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6

4. CRM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.67, the valuation of CRM can be described as correct.
  • Based on the Price/Earnings ratio, CRM is valued cheaper than 80.73% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, CRM is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 13.86 indicates a correct valuation of CRM.
  • Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 77.45% of the companies in the same industry.
  • CRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.67
Fwd PE 13.86
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 81.45% of the companies in the same industry are more expensive than CRM, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, CRM is valued cheaper than 86.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.8
EV/EBITDA 13.82
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
  • A more expensive valuation may be justified as CRM's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)2.5
PEG (5Y)0.71
EPS Next 2Y9.26%
EPS Next 3Y12.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. CRM Dividend Analysis

5.1 Amount

  • CRM has a yearly dividend return of 0.98%, which is pretty low.
  • The stock price of CRM dropped by -28.82% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 0.67, CRM pays a better dividend. On top of this CRM pays more dividend than 90.91% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, CRM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.98%

5.2 History

  • CRM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 21.28% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP21.28%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

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CRM Fundamentals: All Metrics, Ratios and Statistics

SALESFORCE INC

NYSE:CRM (4/7/2026, 12:47:08 PM)

184.17

-0.86 (-0.46%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners84.15%
Inst Owner Change-0.01%
Ins Owners2.57%
Ins Owner Change1.17%
Market Cap169.99B
Revenue(TTM)41.52B
Net Income(TTM)7.46B
Analysts79.31
Price Target278.01 (50.95%)
Short Float %2.55%
Short Ratio1.65
Dividend
Industry RankSector Rank
Dividend Yield 0.98%
Yearly Dividend1.67
Dividend Growth(5Y)N/A
DP21.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.24%
Min EPS beat(2)12.59%
Max EPS beat(2)23.9%
EPS beat(4)4
Avg EPS beat(4)10.15%
Min EPS beat(4)0.37%
Max EPS beat(4)23.9%
EPS beat(8)7
Avg EPS beat(8)6.63%
EPS beat(12)11
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)7.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.62%
Revenue beat(12)1
Avg Revenue beat(12)-0.53%
Revenue beat(16)2
Avg Revenue beat(16)-0.28%
PT rev (1m)-10.84%
PT rev (3m)-16.32%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 14.67
Fwd PE 13.86
P/S 4.09
P/FCF 11.8
P/OCF 11.34
P/B 2.87
P/tB N/A
EV/EBITDA 13.82
EPS(TTM)12.55
EY6.81%
EPS(NY)13.29
Fwd EY7.21%
FCF(TTM)15.6
FCFY8.47%
OCF(TTM)16.25
OCFY8.82%
SpS44.99
BVpS64.08
TBVpS-6.08
PEG (NY)2.5
PEG (5Y)0.71
Graham Number134.51
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROCE 11.86%
ROIC 9.59%
ROICexc 10.98%
ROICexgc 832.21%
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
FCFM 34.68%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
ROICexc(3y)9.79%
ROICexc(5y)6.53%
ROICexgc(3y)348.77%
ROICexgc(5y)217.21%
ROCE(3y)10.09%
ROCE(5y)6.73%
ROICexgc growth 3Y197.62%
ROICexgc growth 5Y168.58%
ROICexc growth 3Y64.12%
ROICexc growth 5Y61.34%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Debt/EBITDA 0.83
Cap/Depr 16.36%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 119.51%
Profit Quality 193.13%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.74
F-Score7
WACC10.85%
ROIC/WACC0.88
Cap/Depr(3y)17.96%
Cap/Depr(5y)19.34%
Cap/Sales(3y)1.76%
Cap/Sales(5y)2.11%
Profit Quality(3y)207.81%
Profit Quality(5y)804.88%
High Growth Momentum
Growth
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
EPS Next Y5.86%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
EPS Next 5Y12.19%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%
Revenue Next Year11.16%
Revenue Next 2Y10.32%
Revenue Next 3Y10.04%
Revenue Next 5Y9.78%
EBIT growth 1Y16.32%
EBIT growth 3Y68.68%
EBIT growth 5Y81.32%
EBIT Next Year37.51%
EBIT Next 3Y17.62%
EBIT Next 5Y4.52%
FCF growth 1Y15.83%
FCF growth 3Y31.64%
FCF growth 5Y28.62%
OCF growth 1Y14.54%
OCF growth 3Y28.24%
OCF growth 5Y25.58%

SALESFORCE INC / CRM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.


What is the profitability of CRM stock?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the expected EPS growth for SALESFORCE INC (CRM) stock?

The Earnings per Share (EPS) of SALESFORCE INC (CRM) is expected to grow by 5.86% in the next year.


Is the dividend of SALESFORCE INC sustainable?

The dividend rating of SALESFORCE INC (CRM) is 3 / 10 and the dividend payout ratio is 21.28%.